Apple Computer—A Case Study in How to Select a Core Holding: A Role Model Investment You Will Want to Emulate

  • Nancy Tengler


If you are a woman who makes lists, investing is the perfect opportunity for you to engage in the practice. A number of books have been written on the topic of how to create an investing checklist and though I haven’t read a book on the subject, there is certainly merit to the idea of establishing a rigid survey method. Constructing a checklist of quantitative valuation criteria and qualitative product and management criteria lends discipline to decision-making. And discipline is good. In fact, as a professional money manager my team did just that. We measured each company we owned against our checklist of 12 Fundamental Factors. In order for a stock to become eligible for purchase it was required to pass a majority of the factors: three qualitative factors that measured the effectiveness of the management team, the company’s “franchise value” (or market and brand dominance), and the relevance of the company’s business or products (what I referred to earlier as the buggy-whip factor). The quantitative factors examined valuation ratios like those we have discussed, among other things. The inspiration for our development of the 12 Factor model was to limit our exposure to stocks that are “cheap for a good reason”: the ultimate value trap.


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© Nancy Tengler 2014

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  • Nancy Tengler

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